What can I do if the money disappears into the U.S.?

[cathyrn]

The time has come for me to protect my children and myself financially now that my husband knows of my intention to divorce him. I have been collecting info and it scares me. My husband had started a business in the U.S. with his brother-in-law(Canadian) and two other business partners(States).

To start the business and to increase the line of credit my husband already had, I had to agree to put the house up for collateral as it's in my husbands' name.This is his second marriage so nothing is in my name. He had our home when I met him. He has acumulated during our marriage, over $100,000 for his RRSP. Plus he just retired and received a company RRSP payment of $255,000.

The problem is that he "says" he needs money for the business and has been transfering money from his RRSP down to the states. All that is left is $90,000. I have found that some has gone towards the business but some is going into a savings account that he has opened there. He has been lying for months about it all and does not realise that I know so much and that I have been keeping records of all of this. I am afarid that he is maliciously liquidating his assets from his RRSPs into the States where I might not be able to touch them as in Quebec I am entitled to half of them in a divorce and he knows it.

What can I do if the money disappears into the U.S.? Also, the line of credit is over $100,000. It's in his name but due to me OK'ing the house as collateral, would the L.O.C. become my debt as well? My head is spinning trying to weed through all this . Please help.

[logicalvelocity]

Originally Posted by cathyrn

The time has come for me to protect my children and myself financially now that my husband knows of my intention to divorce him. I have been collecting info and it scares me. My husband had started a business in the U.S. with his brother-in-law(Canadian) and two other business partners(States).

To start the business and to increase the line of credit my husband already had, I had to agree to put the house up for collateral as it's in my husbands' name.This is his second marriage so nothing is in my name. He had our home when I met him. He has acumulated during our marriage, over $100,000 for his RRSP. Plus he just retired and received a company RRSP payment of $255,000.

The problem is that he "says" he needs money for the business and has been transfering money from his RRSP down to the states. All that is left is $90,000. I have found that some has gone towards the business but some is going into a savings account that he has opened there. He has been lying for months about it all and does not realise that I know so much and that I have been keeping records of all of this. I am afarid that he is maliciously liquidating his assets from his RRSPs into the States where I might not be able to touch them as in Quebec I am entitled to half of them in a divorce and he knows it.

What can I do if the money disappears into the U.S.? Also, the line of credit is over $100,000. It's in his name but due to me OK'ing the house as collateral, would the L.O.C. become my debt as well? My head is spinning trying to weed through all this . Please help.

The only thing I can think of for you to do is bring forth action by way of an Application and seek immediate court assistance to have them put a freeze on the assets.

[FL_Needs_To_Change]

I think because you have managed to keep records of the transactions you may be in a good position.

Having documented what the balance of the RRSP was prior to any transfers to the US either to the company or an account, plus documents on how much went to the company would clearly help when this goes to court.

You'd clearly be able to show the trail of money, should he be "dishonest" when asked to provide a financial statement for the purpose of asset splitting.

You have done a good job at protecting yourself. Documentation is the key to having the better chances in court. Even though there is only $90,000 left of the RRSP, that means the rest either is in the company or in an account, both of which you are legally entitled to being married to him.

Just keep your cool, and continue documentation of any transactions.

Good luck, and remember this is a great place to find help and advice from people that have been through the same things.

FL

[FL_Needs_To_Change]

There are a significant number of differences in the laws for Ontario upon breakup of a marriage and in the province of Quebec.

This link,
http://www.canlii.org/qc/laws/sta/cc...617/whole.html

Contains the laws for Quebec.
Scroll down to section 415, it's DIVISION III FAMILY PATRIMONY
"Establishment of patrimony" for asset splitting and determining assets.

This may help with what to document and how.

[FL_Needs_To_Change]

http://www.canlii.org/on/cas/oncj/2005/01.html

With this link you can click the link "Advanced search" and search laws in Quebec to find similar cases that reflect your case for referances & to see how judges ruled under various situations.

Good luck.

[dadtotheend]

Sounds you both have been secretly planning for a separation. That doesn't bode well for a speedy and inexpensive settlement.

My ex and I spent over $125K in legal fees and well over a year in the courts. Trust me, you want to avoid that.